Elekta to sell its MEG business to York Instruments
STOCKHOLM, July 19, 2018 – Elekta (EKTA-B.ST) announced today that it has signed an agreement to sell its MEG business to York Instruments, a subsidiary of Croton Healthcare, LLC. This divestment follows Elekta’s strategic decision to prioritize its treatment solutions and oncology informatics portfolio.
MEG is a diagnostic functional neuroimaging technique for mapping brain activity. This can be applied in a clinical setting to find locations of abnormalities as well as in a research setting to simply measure brain activity. Elekta’s MEG business, known as MEGIN, is a leading supplier of magnetoencephalography (MEG) technology, with more than 100 delivered MEG systems worldwide.
Elekta’s Head of Portfolio and Chief Strategy Officer, Maurits Wolleswinkel, commented: “Elekta has successfully developed the MEG business over the past decade, but recently took the strategic decision that it is no longer a part of our core treatment solutions and oncology informatics business. Consequently, we have been looking to divest MEGIN and are really pleased to have found a new home for it and its team at York Instruments. York Instruments is committed to continue supporting all MEG customers while further advancing the science and clinical adoption of MEG. Nevertheless, Elekta will continue to be engaged in sales and support in the short term to ensure a smooth transition.”
Janne Huhtala, Head of Global MEG Business at Elekta, said: “This move supports not only the important future development of MEG technology, but also the customers of Elekta and York Instruments, as we bring our deep knowledge and years of experience to the company.”
Gordon Baltzer, Chief Executive Officer of York Instruments, added: “The combination of Elekta’s experience and York Instruments’ advanced technology provides an exciting new future for MEG. We look forward to serving Elekta’s current customers and expanding the MEG market beyond its current borders.”
The divestment is expected to be closed during the first quarter of Elekta’s fiscal year 2018/19. Elekta’s MEGIN business had net sales of about SEK 102 M in the fiscal year 2017/18. No material effect is expected on Elekta’s operating results of the first quarter of fiscal year 2018/19. Further financial details of the transaction were not disclosed.
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Elekta is proud to be the leading innovator of equipment and software used to improve, prolong and save the lives of people with cancer and brain disorders. Our advanced, effective solutions are created in collaboration with customers, and more than 6,000 hospitals worldwide rely on Elekta technology. Our treatment solutions and oncology informatics portfolios are designed to enhance the delivery of radiation therapy, radiosurgery and brachytherapy, and to drive cost efficiency in clinical workflows. Elekta employs 3,600 people around the world. Headquartered in Stockholm, Sweden, Elekta is listed on NASDAQ Stockholm.
York Instruments is a company specializing in magnetic measurements and their healthcare applications. Using the very latest technologies and methodologies, York Instruments is focused on magnetoencephalography (MEG) and its ability to effectively assess neural networks. York Instruments’ revolutionary MEG technology allows for earlier and improved diagnostic capability in relation to a variety of neurological diseases and conditions.